How much employer National Insurance is due on a £70,000 salary in 2026/27?

Full answer

For 2026/27, employers pay Class 1 secondary National Insurance at 15% on each employee's earnings above the secondary threshold of £5,000 a year. On a £70,000 salary the employer pays 15% of £65,000 (£70,000 minus £5,000), which is £9,750. This is a cost on top of the salary, separate from the employee's own Income Tax and National Insurance, and is not deducted from the employee's pay. Eligible employers can claim the Employment Allowance, which is £10,500 for 2026/27, to reduce their total employer NI bill across all employees, though for a single employee at this salary the allowance alone almost covers the entire employer NI bill, while a payroll with several staff at similar salaries will use up the allowance more quickly. Employer NI is also due on most benefits in kind, such as a company car or private medical insurance, and on any bonus paid to the employee. Salary sacrifice arrangements, particularly pension contributions, reduce the employee's gross salary and therefore cut employer NI as well as the employee's own Income Tax and NI, which is why many employers pass on some or all of the employer NI saving as an extra pension contribution when staff sacrifice salary. Use the Employer NI calculator to work out the total cost of employing someone at any salary, including the Employment Allowance.

More answers

• How much employer National Insurance is due on a £60,000 salary in 2026/27?
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